Jakarta. Jakarta Governor Pramono Anung has announced a 6.17% increase in the capital’s provincial minimum wage (UMP) for 2026, raising it to Rp5,729,876 per month ($341.81) from Rp5,396,761 this year.

The increase, equivalent to about Rp330,000, was finalized following deliberations by the Jakarta Wage Council and was announced at City Hall on Wednesday.

“During the Wage Council meeting, discussions related to the minimum wage concluded with the decision to set the alpha at 0.75. With this, the minimum wage is certain to rise and remain above Jakarta’s inflation rate,” Pramono said.

Under the formula, wage increases are determined by adding inflation to economic growth multiplied by the alpha coefficient.  Alpha determines how much of economic growth is passed on to wages. The value of alpha is set by provincial or district wage councils, taking into account factors such as labor absorption and average wage levels. The new wage formula increases the alpha to a range from 0.5 to 0.9, higher than the previous formula of 0.1 to 0.3.

In addition to the wage hike, Pramono pledged several incentives to support workers’ purchasing power. These include free access to Jakarta’s public transportation system, health insurance coverage through BPJS Kesehatan for workers not covered by their employers, and subsidies for clean water services provided by PAM Jaya.